Common use of INSTRUCTIONS FOR USE OF FORMS Clause in Contracts

INSTRUCTIONS FOR USE OF FORMS. A. Form No. 1: Hourly Litigation · Conditions (Par. 1) and Effective Date (Par. 17) Paragraph 1 (Conditions) and paragraph 17 (Effective Date) work together and outline various conditions which must be met before the fee agreement is binding on the parties. If the conditions are not met, the agreement may not take effect but the attorney may still be entitled to recover a reasonable fee. (B&P 6148(a), 6148(c)) · Scope of Services and Attorney’s Duties (Par. 2) and Client’s Duties (Par. 3) The attorney should fill in a detailed description of the services to be provided. This may be a statutory requirement. (B&P 6148(a)(2)) This paragraph excludes representation in an appeal, collection proceedings after judgment or proceedings regarding renewal of a judgment. It also provides that a separate written agreement is required for these services and any other services not provided in the description. Paragraph 3 lists all the duties the client must fulfill during the attorney-client relationship, which may be a statutory requirement. (B&P 6148(a)(3)) · Deposit (Par. 4) Although a deposit is not required, if the attorney chooses to require a deposit, he or she should keep this clause in the agreement and fill in the amount of the initial deposit and the date it must be paid. Since an attorney cannot withdraw funds from the trust account without the client’s authorization, an authorization is included in this paragraph. There is also a recitation that the deposit is not an estimate of the total fees and costs to be charged. When the initial deposit is exhausted, the provision permits the attorney to require a further deposit and the attorney should fill in the amount. Finally, in the “Optional Clauses” document there is a provision for a “Replenishing Deposit” which permits the attorney to require the client replenish the deposit each month. · Legal Fees (Par. 5) Since Business & Professions Code Section 6148(a)(1) requires the attorney to list hourly rates, the attorney should fill in the rates for each attorney and the attorney’s personnel. The provision also states that rates are subject to change on 30 days written notice to the client. The attorney may withdraw from the representation if the client declines to pay the increased rate and if permitted under the California Rules of Professional Conduct. The paragraph also contains a list of various tasks for which an attorney may charge the client. The agreement provides for a minimum charge of one-tenth of an hour. This list may be modified.

INSTRUCTIONS FOR USE OF FORMS. A. Form No. 1: Hourly Litigation · • Conditions (Par. 1) and Effective Date (Par. 17) Paragraph 1 (Conditions) and paragraph 17 (Effective Date) work together and outline various conditions which must be met before the fee agreement is binding on the parties. If the conditions are not met, the agreement may not take effect but the attorney may still be entitled to recover a reasonable fee. (B&P 6148(a), 6148(c)) · • Scope of Services and Attorney’s Duties (Par. 2) and Client’s Duties (Par. 3) The attorney should fill in a detailed description of the services to be provided. This may be a statutory requirement. (B&P 6148(a)(2)) This paragraph excludes representation in an appeal, collection proceedings after judgment or proceedings regarding renewal of a judgment. It also provides that a separate written agreement is required for these services and any other services not provided in the description. Paragraph 3 lists all the duties the client must fulfill during the attorney-client relationship, which may be a statutory requirement. (B&P 6148(a)(3)) · • Deposit (Par. 4) Although a deposit is not required, if the attorney chooses to require a deposit, he or she should keep this clause in the agreement and fill in the amount of the initial deposit and the date it must be paid. Since an attorney cannot withdraw funds from the trust account without the client’s authorization, an authorization is included in this paragraph. There is also a recitation that the deposit is not an estimate of the total fees and costs to be charged. When the initial deposit is exhausted, the provision permits the attorney to require a further deposit and the attorney should fill in the amount. Finally, in the “Optional Clauses” document there is a provision for a “Replenishing Deposit” which permits the attorney to require the client replenish the deposit each month. · • Legal Fees (Par. 5) Since Business & Professions Code Section 6148(a)(1) requires the attorney to list hourly rates, the attorney should fill in the rates for each attorney and the attorney’s personnel. The provision also states that rates are subject to change on 30 days written notice to the client. The attorney may withdraw from the representation if the client declines to pay the increased rate and if permitted under the California Rules of Professional Conduct. The paragraph also contains a list of various tasks for which an attorney may charge the client. The agreement provides for a minimum charge of one-tenth of an hour. This list may be modified.